Zeepay in talks with BoG to resolve forex licence suspension

Zeepay Ghana Limited has said it is has said it is in discussions with the Bank of Ghana to resolve the central bank's suspension of its forex licence.

The Bank of Ghana, a week ago, imposed a fine on Zeepay for contravening clause 7.3(a) of the Inward Remittance regulations.

The specific violation pertains to the failure of the settlement bank to adhere to the prescribed average interbank exchange rate outlined in clause 7.3(a).

The clause mandates the use of the average interbank exchange rate published by the Ghana Association of Banks on the day the transfer is received, or as specified by the Bank of Ghana for converting settlement funds into the local currency.

In response to this breach, the Bank of Ghana, apart from the fine, also suspended the Forex Licence of Zeepay.

The suspension took effect from 27 November 2023 to 8 December 2023, and is a result of the company's violation of sections 3(1) and 15(3) of the Foreign Exchange Act, 2006 (Act 723).

The action, according to the central bank, serves as a stern warning to all forex market participants, including banks, forex bureaus, forex brokers, Dedicated Electronic Money Issuers (DEMIs), Enhanced Payment Service Providers (EPSPs), and Money Transfer Operators (MTOs).

In a statement, Zeepay said informed the general public to take note that "our general operating licence was not expressly impacted by the bank’s recent decision", adding: "We will ensure strict compliance with all regulations and guidelines".

The wholly Ghanaian-owned company was founded in 2014.

It provides digital remittance termination and ancillary mobile financial services in Africa and the Caribbean.

It operates in more than 20 countries and has partnerships with major remittance players.